Total revenues during the fourth quarter of 2011
increased 57 percent to $803.4
million, compared with $511.2
millionin the same quarter of 2010.
Net income for the three months ended
Dec. 31, 2011, was $36.6
million, compared with $93.0
millionin the comparable 2010 period.

Additionally, adjusted net income for the three
months ended Dec. 31, 2011, was
$168.2 million, up 32 percent,
compared with $127.6 millionin the
same period in 2010. Reported diluted
earnings per share for the quarter ended Dec.
31, 2011, were $0.30compared
with $0.77reported in the fourth
quarter of 2010. Adjusted diluted earnings per
share for the same period were $1.40,
up 32 percent from $1.06reported in
2010.

"Endo has built a diversified platform of
healthcare businesses that span branded
pharmaceuticals, generics, medical devices and
services, and our 2011 financial performance
reinforces the execution of our growth strategy and
evolution through acquisition, as well as the
organic contributions and strengths of each of our
business segments," said Dave
Holveck, president and CEO of Endo. "We
look forward to updating our investors on the
sustainable growth story of our diversified
business and how we are exploring new ways to
deliver integrated solutions that create value for
key constituencies."

FINANCIAL PERFORMANCE AT A
GLANCE

($ in thousands, except per share
amounts)

4th Quarter

Twelve Months EndedDecember 31

2011

2010

Change

2011

2010

Change

Total Revenues

$803,406

$511,190

57%

$2,730,121

$1,716,229

59%

Reported Net Income

36,594

92,985

(61)%

187,613

259,006

(28)%

Reported Diluted EPS

0.30

0.77

(61)%

1.55

2.20

(30)%

Adjusted Net Income

168,186

127,641

32%

568,153

410,361

38%

Adjusted Diluted EPS

$1.40

$1.06

32%

$4.69

$3.48

35%

BRANDED PHARMACEUTICALS

Branded pharmaceutical sales of $458
millionfor the fourth quarter 2011
represented an increase of 16 percent versus the
prior year. The fourth quarter performance of
OPANA ER, Voltaren Gel and LIDODERM contributed to
a strong full year for Endo's branded
pharmaceuticals segment, which grew 13 percent
versus 2010. In the fourth quarter, OPANA ER
net sales grew 46 percent on prescription growth of
40 percent. Voltaren Gel net sales grew 23
percent on prescription growth of 34 percent.
Net sales of LIDODERM grew 12 percent on flat
prescription growth. The increase in LIDODERM
net sales reflects changes as of mid November
2011, with respect to royalty obligations
among Endo, Hind Healthcare, Inc., and Teikoku
Seiyaku Co., Ltd.; changes which have been
previously described in our filings with the U.S.
Securities and Exchange Commission.

On Dec. 12, 2011, we announced the
receipt of U.S. Food and Drug Administration (FDA)
approval of our new formulation of OPANA ER
designed to be crush-resistant. The approval
represents a significant milestone for Endo's
branded pharmaceuticals portfolio. Endo
believes that this new formulation of OPANA ER,
coupled with our long-term commitment to awareness
and education around the appropriate use of
opioids, will benefit patients, physicians and
payers. Additionally, a new patent was issued
during the 4th quarter, (U.S. patent number
8,075,872) covering the new formulation of OPANA ER
and is expected to provide protection until
November 2023for the new formulation
of Opana ER.

On Jan. 6, 2012, Endo announced the
signing of a worldwide license and development
agreement with U.S.-based BioDelivery Sciences
International for BEMA® Buprenorphine. The
addition of BEMA Buprenorphine reflects Endo's
continued commitment to its Branded Pharmaceuticals
pain franchise and will broaden Endo's
portfolio of therapeutics, allowing it to offer an
integrated suite of products that currently include
OPANA ER, Voltaren Gel and LIDODERM, as well as a
broad range of generic pain products.

GENERICS

Generics sales of $151 millionfor the
fourth quarter 2011 represented an increase of 131
percent over last year, reflecting Endo's
acquisition of Qualitest Pharmaceuticals in
November 2010. For the twelve
months ended December 31, 2011,
generic sales increased approximately $420
million, an increase of 287 percent, driven
by the acquisition of Qualitest Pharmaceuticals.
On a pro forma basis, generics sales grew 21
percent in 2011, reflecting the ability to
capitalize on new business opportunities in generic
pharmaceuticals.

DEVICES

Devices sales, driven by the June
2011acquisition of American Medical Systems
(AMS), were $142 millionfor the fourth
quarter. Men's Health, led by sales of
the AMS 800® Artificial Urinary Sphincter, grew 7
percent on a pro forma basis in the fourth quarter
of 2011, compared with same period last year.
Benign prostatic hyperplasia (BPH), led by
the increasing share of procedural volumes for the
GreenLight XPS console and the accompanying MoXy
fiber, grew 1 percent on a pro forma basis in the
fourth quarter of 2011. Women's Health
continued to experience pressure in the fourth
quarter of 2011, following a September FDA Advisory
Committee meeting, which met to discuss the use of
surgical mesh products in the repair of pelvic
organ prolapse and stress urinary incontinence.

SERVICES

Services sales of $52 millionfor the
fourth quarter 2011 represented an increase of 2
percent over last year, as a result of improved
access to equipment for patients and physicians.
The Company expects improved top-line growth
from the Services segment in 2012 and beyond from
an expanding set of partnerships in our Endocare®
cryoablation therapy as well as our pilot programs
involving the sales of this device through the AMS
channel. In the fourth quarter of 2011,
HealthTronics Inc., completed the strategic
acquisitions of Intuitive Medical Software (IMS)
and meridianEMR, Inc., two providers of electronic
medical records for urologists, that provide access
to approximately 1,850 urologists using data
platforms that will enhance service offerings in
urology practice management.

Balance Sheet Update

During the fourth quarter of 2011, Endo made
payments of approximately $140
millionto reduce the outstanding principal
of term-loan debt associated with the acquisition
of AMS. For the full year ending Dec.
31, 2011, Endo made payments of
approximately $290 millionto reduce
the outstanding principal of term-loan debt
associated with the acquisition of AMS. At
Dec. 31, 2011, the company's debt
to adjusted EBITDA ratio is 3.0 times. The
company believes that it will achieve its objective
of reducing its debt to adjusted EBITDA ratio to
2.0 to 2.5 times in 2013.

2012 FINANCIAL GUIDANCE

Endo's estimates are based on projected results
for the twelve months ended Dec. 31,
2012. The company's guidance for
reported (GAAP) earnings per share does not include
any estimates for the potential future changes in
the fair value of contingent consideration, certain
separation benefits, asset impairment charges or
for potential new corporate development
transactions. For the full year ended
Dec. 31, 2012, Endo estimates:

A replay of the call will be available from
Feb. 24at 10:30 p.m. ET until
12:00 p.m. ETon Mar. 9, 2012by
dialing 888-286-8010 (domestic) or +1 617-801-6888
(international) and entering passcode 35294180.

A simultaneous webcast of the call can be accessed
by visiting www.endo.com. In
addition, a replay of the webcast will be available
until 12:00 p.m. ETon Mar. 9,
2012. The replay can be accessed by
clicking on "Events" in the Investor
Relations section of the website.

Supplemental Financial Information

The following tables provide a reconciliation of
our reported (GAAP) statements of operations to our
adjusted statements of operations for each of the
three months ended Dec. 31, 2011and
Dec. 31, 2010(in thousands, except per
share data):

Three Months Ended December 31, 2011
(unaudited)

Actual

Reported

(GAAP)

Adjustments

Adjusted

REVENUES

$ 803,406

$ -

$ 803,406

COSTS AND EXPENSES:

Cost of revenues

294,781

(61,449)

(1)

233,332

Selling, general and
administrative

242,656

(17,225)

(2)

225,431

Research and development

55,432

(752)

(3)

54,680

Asset impairment charges

93,398

(93,398)

(4)

-

Acquisition-related items, net

4,121

(4,121)

(5)

-

OPERATING INCOME

$ 113,018

$ 176,945

$ 289,963

INTEREST EXPENSE, NET

50,882

(4,938)

(6)

45,944

LOSS ON EXTINGUISHMENT OF DEBT,
NET

3,371

(3,371)

(7)

-

OTHER INCOME, NET

(491)

-

(491)

INCOME BEFORE INCOME TAX

$ 59,256

$ 185,254

$ 244,510

INCOME TAX

9,343

53,662

(8)

63,005

CONSOLIDATED NET INCOME

$ 49,913

$ 131,592

$ 181,505

Less: Net income attributable to
noncontrolling interests

(13,319)

-

(13,319)

NET INCOME ATTRIBUTABLE TO ENDO
PHARMACEUTICALS HOLDINGS INC.

$ 36,594

$ 131,592

$ 168,186

DILUTED EARNINGS PER SHARE

$ 0.30

$ 1.40

DILUTED WEIGHTED AVERAGE
SHARES

120,418

120,418

Notes to reconciliation of our GAAP
statements of operations to our adjusted
statements of operations:

To exclude amortization of
commercial intangible assets related to
marketed products of $51,925, the impact
of inventory step-up recorded as part of
acquisition accounting of $8,720, and
certain integration costs and separation
benefits incurred in connection with
continued efforts to enhance the
company's operationsof $804.

To exclude certain integration
costs and separation benefits incurred in
connection with continued efforts to
enhance the company's operations of
$3,419, amortization of customer
relationships of $2,543 and the accrual
of an unfavorable court decision and
attorneys' fees in the matter of
Allmed Systems Inc. d/b/a Lisa
Laser USA, Inc. and Lisa Laser Products
OHG. vs. HealthTronics, Inc. of $11,263,
which is currently pending appeal.

To exclude milestone payments to
partners.

To exclude asset impairment
charges.

To exclude acquisition-related
costs of $4,026 and a loss of $95
recorded to reflect the change in fair
value of the contingent consideration
associated with the Qualitest
acquisition.

To exclude additional interest
expense as a result of adopting ASC
470-20.

To exclude the unamortized debt
issuance costs written off and recorded
as a loss on extinguishment of debt upon
our 2011 prepayments on our Term Loan
indebtedness.

To reflect the cash tax savings
results from our recent acquisitions and
the tax effect of the pre-tax adjustments
above at applicable tax rates.

Three Months Ended December 31, 2010
(unaudited)

Actual

Reported

(GAAP)

Adjustments

Adjusted

REVENUES

$ 511,190

$ -

$ 511,190

COSTS AND EXPENSES:

Cost of revenues

169,548

(35,119 )

(1)

134,429

Selling, general and
administrative

143,203

(675)

(2)

142,528

Research and development

39,256

(4,650)

(3)

34,606

Asset impairment charges

22,000

(22,000)

(4)

-

Acquisition-related items, net

(12,339)

12,339

(5)

-

OPERATING INCOME

$ 149,522

$ 50,105

$ 199,627

INTEREST EXPENSE, NET

13,834

(4,476)

(6)

9,358

OTHER INCOME, NET

(1,454)

-

(1,454)

INCOME BEFORE INCOME TAX

$ 137,142

$ 54,581

$ 191,723

INCOME TAX

31,409

19,925

(7)

51,334

CONSOLIDATED NET INCOME

$ 105,733

$ 34,656

$ 140,389

Less: Net income attributable to
noncontrolling interests

(12,748)

-

(12,748)

NET INCOME ATTRIBUTABLE TO ENDO
PHARMACEUTICALS HOLDINGS INC.

$ 92,985

$ 34,656

$ 127,641

DILUTED EARNINGS PER SHARE

$ 0.77

$ 1.06

DILUTED WEIGHTED AVERAGE
SHARES

120,516

120,516

Notes to reconciliation of our GAAP
statements of operations to our adjusted
statements of operations:

To exclude amortization of
commercial intangible assets related to
marketed products of $30,244 and the
impact of inventory step-up recorded as
part of acquisition accounting of
$4,875.

To exclude certain costs and
separation benefits incurred in
connection with continued efforts to
enhance the Company's
operations.

To exclude milestone and upfront
payments to partners.

To exclude asset impairment
charges.

To exclude acquisition-related
costs of $41,231 as well as the impact,
under purchasing accounting, of a gain
recorded to reflect the change in the
company's current estimate of fair
value, in accordance with GAAP, of the
contingent consideration associated with
the Indevus acquisition of
($53,570).

To exclude additional interest
expense as a result of adopting ASC
470-20 of $4,508 and to exclude
amortization of the premium on debt
acquired from Indevus of ($32).

To reflect the cash tax savings
resulting from the Indevus,
HealthTronics, Penwest and Qualitest
acquisitions and the tax effect of the
pre-tax adjustments above at applicable
tax rates.

The following tables provide a reconciliation of
our reported (GAAP) statements of operations to our
adjusted statements of operations for each of the
twelve months ended Dec. 31, 2011and
Dec. 31, 2010(in thousands, except per
share data):

Twelve Months Ended December 31,
2011(unaudited)

Actual

Reported

(GAAP)

Adjustments

Adjusted

REVENUES

$ 2,730,121

$ -

$ 2,730,121

COSTS AND EXPENSES:

Cost of revenues

1,065,208

(245,089)

(1)

820,119

Selling, general and
administrative

824,534

(37,402)

(2)

787,132

Research and development

182,286

(19,098)

(3)

163,188

Asset impairment charges

116,089

(116,089)

(4)

-

Acquisition-related items, net

33,638

(33,638)

(5)

-

OPERATING INCOME

$ 508,366

$ 451,316

$ 959,682

INTEREST EXPENSE, NET

148,024

(18,952)

(6)

129,072

LOSS ON EXTINGUISHMENT OF DEBT,
NET

11,919

(11,919)

(7)

-

OTHER INCOME, NET

(3,268)

2,636

(8)

(632)

INCOME BEFORE INCOME TAX

$ 351,691

$ 479,551

$ 831,242

INCOME TAX

109,626

99,011

(9)

208,637

CONSOLIDATED NET INCOME

$ 242,065

$ 380,540

$ 622,605

Less: Net income attributable to
noncontrolling interests

(54,452)

-

(54,452)

NET INCOME ATTRIBUTABLE TO ENDO
PHARMACEUTICALS HOLDINGS INC.

$ 187,613

$ 380,540

$ 568,153

DILUTED EARNINGS PER SHARE

$ 1.55

$ 4.69

DILUTED WEIGHTED AVERAGE
SHARES

121,178

121,178

Notes to reconciliation of our GAAP
statements of operations to our adjusted
statements of operations:

To exclude amortization of
commercial intangible assets related to
marketed products of $184,496, the impact
of inventory step-up recorded as part of
acquisition accounting of $49,438,
certain integration costs and separation
benefits incurred in connection with
continued efforts to enhance the
company's operationsof $2,155 and
milestone payments to partners of
$9,000.

To exclude certain integration
costs and separation benefits incurred in
connection with continued efforts to
enhance the company's operations of
$19,666, amortization of customer
relationships of $6,473 and the accrual
of an unfavorable court decision and
attorneys' fees in the matter of
Allmed Systems Inc. d/b/a Lisa
Laser USA, Inc. and Lisa Laser Products
OHG. vs. HealthTronics, Inc. of $11,263,
which is currently pending appeal.

To exclude milestone payments to
partners.

To exclude asset impairment
charges.

To exclude acquisition-related
costs of $41,001 and a gain of $(7,363)
recorded to reflect the change in fair
value of the contingent consideration
associated with the Indevus and Qualitest
acquisitions.

To exclude additional interest
expense as a result of adopting ASC
470-20.

To exclude the unamortized debt
issuance costs written off and recorded
as a loss on extinguishment of debt of
$8,548 upon the early termination of our
2010 Credit Facility and $3,371 upon our
2011 prepayments on our Term Loan
indebtedness.

To exclude a gain on hedging
activities for foreign currencies.

To reflect the cash tax savings
results from our recent acquisitions and
the tax effect of the pre-tax adjustments
above at applicable tax rates.

Twelve Months Ended December 31, 2010
(unaudited)

Actual

Reported

(GAAP)

Adjustments

Adjusted

REVENUES

$ 1,716,229

$ -

$ 1,716,229

COSTS AND EXPENSES:

Cost of revenues

504,757

(90,263)

(1)

414,494

Selling, general and
administrative

547,605

(16,733)

(2)

530,872

Research and development

144,525

(24,362)

(3)

120,163

Asset impairment charges

35,000

(35,000)

(4)

-

Acquisition-related items, net

18,976

(18,976)

(5)

-

OPERATING INCOME

$ 465,366

$ 185,334

$ 650,700

INTEREST EXPENSE, NET

46,601

(16,983)

(6)

29,618

OTHER INCOME, NET

(1,933)

(239)

(7)

(2,172)

INCOME BEFORE INCOME TAX

$ 420,698

$ 202,556

$ 623,254

INCOME TAX

133,678

51,201

(8)

184,879

CONSOLIDATED NET INCOME

$ 287,020

$ 151,355

$ 438,375

Less: Net income attributable to
noncontrolling interests

(28,014)

-

(28,014)

NET INCOME ATTRIBUTABLE TO ENDO
PHARMACEUTICALS HOLDINGS INC.

$ 259,006

$ 151,355

$ 410,361

DILUTED EARNINGS PER SHARE

$ 2.20

$ 3.48

DILUTED WEIGHTED AVERAGE
SHARES

117,951

117,951

Notes to reconciliation of our GAAP
statements of operations to our adjusted
statements of operations:

To exclude amortization of
commercial intangible assets related to
marketed products of $83,974 and the
impact of inventory step-up recorded as
part of acquisition accounting of
$6,289.

To exclude certain costs incurred
with connection with continued efforts to
enhance the Company's
operations.

To exclude a milestone-like payment
and milestone and upfront payments to
partners of $23,850 and certain costs
incurred in connection with continued
efforts to enhance the cost structure of
the company of $512.

To exclude asset impairment
charges.

To exclude acquisition-related
costs of $70,396 as well as the impact,
under purchase accounting, of a gain
recorded to reflect the change in the
company's current estimate of fair
value, in accordance with GAAP, of the
contingent consideration associated with
the Indevus acquisition of
($51,420).

To exclude additional interest
expense as a result of adopting ASC
470-20 of $17,296 and to exclude
amortization of the premium on debt
acquired from Indevus of ($313).

To exclude changes in fair value of
financial instruments, net.

To reflect the cash tax savings
resulting from the Indevus,
HealthTronics, Penwest and Qualitest
acquisitions and the tax effect of the
pre-tax adjustments above at applicable
tax rates.

See Endo's Current Report on Form
8-K filed today with the Securities and Exchange
Commission for additional non-GAAP reconciliations
and for an explanation of Endo's reasons for
using non-GAAP measures.

Tax effect of pre-tax adjustments at
the applicable tax rates and certain other
expected cash tax savings as a result of
recent acquisitions

($0.56)

($0.56)

Diluted adjusted income per common
share guidance

$5.00

To

$5.20

The company's guidance is being
issued based on certain assumptions
including:

Certain of the above amounts are
based on estimates and there can be no
assurance that Endo will achieve these
results.

Includes all completed business
development transactions as of February
24, 2012.

About Endo

Endo Pharmaceuticals Holdings is a U.S.-based,
specialty healthcare solutions company with a
diversified business model, operating in three key
business segments - branded pharmaceuticals,
generics and devices and services. We deliver an
innovative suite of complementary products and
services to meet the needs of patients in areas
such as pain management, pelvic health, urology,
endocrinology and oncology. For more information
about Endo Pharmaceuticals Holdings and its
businesses Endo Pharmaceuticals Inc., American
Medical Systems, HealthTronics and Qualitest
Pharmaceuticals, please visit http://www.endo.com/.

(Tables Attached)

The following tables present Endo's unaudited
Net Revenues for the three and twelve months ended
Dec. 31, 2011and 2010:

(1) To conform to current year
presentation, net sales from our
immediate-release formulation of OPANA have
been reclassified and are now included
within other branded product
results.

The following table presents Endo's unaudited
Pro forma Net Revenues for the eight quarters ended
Dec. 31, 2011giving effect to the
AMS acquisition, the Qualitest acquisition,
the Penwest acquisition and the HealthTronics, Inc.
acquisition as if they had occurred on Jan.
1, 2010:

(1) To conform to current year
presentation, net sales from our
immediate-release formulation of Opana have
been reclassified and are now included
within other branded product
results.

(2) The uterine health product
line,Her Option®
was sold to a third party in February 2010.
Revenues for 2010 consist of
end-customer revenue earned prior to the
date of sale, in addition to revenue earned
as part of the product supply agreement
with CooperSurgical, Inc., which continued
through the fourth quarter of 2010.

Adjustments to reconcile consolidated
net income to net cash provided by
operating activities:

Depreciation and amortization

237,414

108,404

Stock-based compensation

46,013

22,909

Amortization of debt issuance costs
and premium / discount

32,788

22,013

Asset impairment charges

116,089

35,000

Other

(71,835)

(65,372)

Changes in assets and liabilities
which provided cash:

99,581

43,672

Net cash provided by operating
activities

702,115

453,646

INVESTING ACTIVITIES:

Purchases of property, plant and
equipment, net

(59,383)

(19,891)

Proceeds from investments and sales
of trading securities

85,025

231,125

Acquisition, net of cash
acquired

(2,393,397)

(1,105,040)

Other

(6,337)

(2,517)

Net cash used in investing
activities

(2,374,092)

(896,323)

FINANCING ACTIVITIES:

Proceeds from debt, net of principal
payments

1,891,584

279,955

Deferred financing fees

(82,504)

(13,563)

Purchase of common stock

(34,702)

(58,974)

Distributions to noncontrolling
interests

(53,997)

(28,870)

Other

32,300

21,881

Net cash provided by financing
activities

1,752,681

200,429

Effect of foreign exchange
rate

702

-

NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS

81,406

(242,248)

CASH AND CASH EQUIVALENTS, BEGINNING
OF PERIOD

466,214

708,462

CASH AND CASH EQUIVALENTS, END OF
PERIOD

$ 547,620

$ 466,214

Safe Harbor Statement

This press release contains forward-looking
statements within the meaning of the Private
Securities Litigation Reform Act of 1995.
Statements including words such as
"believes," "expects,"
"anticipates," "intends,"
"estimates," "plan,"
"will," "may," "look
forward," "intend,"
"guidance," "future" or similar
expressions are forward-looking statements.
Because these statements reflect our current
views, expectations and beliefs concerning future
events, these forward-looking statements involve
risks and uncertainties. Investors should note that
many factors, as more fully described under the
caption "Risk Factors" in our Form 10-K,
Form 10-Q and Form 8-K filings with the Securities
and Exchange Commission and as otherwise enumerated
herein or therein, could affect our future
financial results and could cause our actual
results to differ materially from those expressed
in forward-looking statements contained in our
Annual Report on Form 10-K. The forward-looking
statements in this press release are qualified by
these risk factors. These are factors that,
individually or in the aggregate, could cause our
actual results to differ materially from expected
and historical results. We assume no obligation to
publicly update any forward-looking statements,
whether as a result of new information, future
developments or otherwise.